By Business Reporter — Desperate to project optimism in the face of economic turmoil, Finance Minister Professor Mthuli Ncube on Thursday presented the 2025 Mid-Term Budget Review Statement at the new Parliament Building in Mt Hampden. He reviewed the ZiG$270 billion National Budget despite growing public frustration with the worsening cost of living, a rapidly deteriorating currency, and a government seemingly out of touch with reality.
Professor Ncube claimed Zimbabwe remained “in growth mode,” citing what he called “positive developments” during the first half of the year — despite overwhelming evidence pointing to a collapsing economy, with the recently introduced Zimbabwe Gold (ZiG) currency already failing to restore market confidence or curb inflation.
“Given the positive economic developments during the period January to June, we are confident that the projected economic growth of six percent in the 2025 National Budget is achievable,” Ncube said. “All sectors are expected to record positive growth in 2025, mainly on account of a favourable agriculture season, improved electricity generation, and a stable exchange and inflation rate — notwithstanding declining international mineral commodity prices and a subdued global economic climate.”
However, Ncube’s upbeat tone contrasts sharply with on-the-ground realities: runaway prices in ZiG, shortages of basic goods, and mounting pressure on businesses and households amid an unconvincing monetary reform process.
The ZiG, launched in April 2024 to replace the depreciated Zimbabwe dollar, has struggled to gain traction as both retailers and the public continue to rely heavily on the US dollar.
Zimbabwe’s economic problems are rooted in long-term structural weaknesses, including a bloated public sector, weak industrial base, heavy reliance on mining exports, and widespread corruption. According to economists, the frequent currency changes and arbitrary policy shifts have deepened public distrust in formal financial systems.
The minister claimed that government reforms would enhance the ease of doing business and create a competitive economic environment. “Government has, with immediate effect, begun reviewing various fees and charges.
In addition, the number of bureaucratic steps and compliance requirements will be drastically reduced. On the fiscal front, the Government will continue to review the existing tax system with a view to reducing observed distortions and granting a supportive regime for business growth and competitiveness,” he said.
He added that policy consistency would be key to maintaining stability. “Mr Speaker Sir, the country has enjoyed economic stability during the first half of the year, and I want to assure Honourable Members that both fiscal and monetary authorities are going to stay in that mode.
We cannot afford any policy slippages.”
Yet critics argue that policy slippages have already become the norm. From introducing the ZiG without broad consultation to forcing citizens to pay some taxes in a barely usable local currency, the government has continued to implement inconsistent and often contradictory fiscal and monetary measures.
Key highlights from the 2025 Mid-Term Budget Review include:
Zimbabwe’s economy has long been weighed down by political instability, disputed elections, and tight state control over key economic levers. While the official narrative talks of “growth and reform,” ordinary Zimbabweans continue to grapple with rising unemployment, deteriorating public services, and a shrinking formal economy.
Source: Zimeye
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